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Held at HM Pleasure

PoodlePoodle Experienced MentorRegistered Posts: 711
Dear all,

One of my clients, a sole trader in the building game and who has been a client of mine for some years, spend 6 months last year detained at HM pleasure.

Any Ideas about how I should deal with his business expenditure for the time that he was inside?

For example he has a van on a loan and an office at home, usual small business set up.


PS Before you ask, his garden grew very well, with personal consumption items for a medical condition. Of course!


  • claudialoweclaudialowe Trusted Regular Registered Posts: 275

    I think that I would probably time apportion everything - ie 6 months working and 6 months not.

    Any bank loans I think that I would give the interest for the whole year, and motor loans probably as well, but HMRC would well argue against these.

  • PoodlePoodle Experienced Mentor Registered Posts: 711

    I cheked with Croner today and they advised that as the detention was only short then all business expenses are allowable as usual as if there had been no break.

  • claudialoweclaudialowe Trusted Regular Registered Posts: 275
    Well - you learn something new every day - I have to say that I am gobsmacked. If someone was ill that is something, but having committed and been sentenced for a criminal offence.....

    Hey ho what a world we live in!

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